PSBs to step up one-time settlement in written-off loans

August 31, 2023 admin 0 Comments one-time settlement, Public sector banks (PSBs), Reserve Bank of India, the finance ministry, written-off loans

Public sector banks (PSBs) are expected to step up one-time settlement (OTS) in written-off loans as the Finance Ministry and the Reserve Bank of India have emphasised on the importance of improving recovery from these accounts.

Since legal action can be drawn out, the state-owned lenders are seen actively pursuing OTS to meet the Finance Ministry-set target of making about 40 per cent recovery from written-off loan accounts.

PSBs could recover only 14 per cent (or Rs. 1.03-lakh crore) from written-off loans aggregating Rs. 7.34-lakh crore in the last five years ended March 2022.